COMEX gold futures trimmed declines but remained a tad weaker by midmorning on Tuesday, as investors tracked a softer oil market and got ready for a US decision on interest rates later in the day, dealers said.
December delivery gold was down $2.70 at $656.80 an ounce by 10:26 am EDT at the New York Mercantile Exchange's COMEX division, within a range of $660.80 to $652.30.
"You have a little support around $652, and when you held it, you got a little technical buying in here under the market," said AG Edwards & Sons commodity commentator James Quinn.
"The earlier selling looked to be some weak long liquidation after the economic data, but there's not a lot of volume because traders are waiting for the Fed. The oil was a little bit weaker and that is also why we were a little lower," he said, speaking from the COMEX floor.
Gold stayed in negative territory in cautious trade, despite the dollar slouching near two-month lows. Investors were waiting to see if the Federal Open Market Committee at its meeting on Tuesday decides to pause its two-year monetary tightening cycle.
Spot gold was down at $644.20/644.95 an ounce, versus Monday's late New York quote at $647.60/8.35. Tuesday's morning fix in London reached $645.40. Bullion is way above lows hit in 1999 near $250 but off from the 26-year peak of above $730 touched in May 2006. Its all-time high was $850 an ounce, struck in 1980.
"The outlook for gold remains favourable and dips are likely to continue to be good buying opportunities," said precious metals dealer ScotiaMocatta in a monthly report. COMEX September silver was off 0.5 cent at $12.26 an ounce, dealing from $12.39 to $12.11.
Spot silver slipped to $12.22/12.27 an ounce, from $12.24/29 previously. Tuesday's fix was at $12.13.
NYMEX October platinum dropped $11.90 to $1,255 an ounce. Spot platinum fetched $1,241/1,245. September palladium lost $7.55 to hit $320 an ounce. Spot palladium was quoted at $316/321.
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